Due to speculative demand for foreign currency on Thursday, the value of the Nigerian naira declined against the US dollar across all currency markets. In an effort to strengthen the supply side, the apex bank has reduced FX sales, which has complicated naira pricing ahead of inflation statistics.
Based on data from the Central Bank of Nigeria (CBN), Nigeria’s gross foreign reserves are increasing even though the country’s oil production has decreased to 1.45 million barrels per day.
According to information from the CBN website, after a series of inflows, gross foreign reserves surpassed $33 billion in June 2024. Lack of FX market intervention caused the value of the naira to decline against the US dollar, which was the main currency in the parallel market.
According to information from FMDQ, exchange rate dropped by 0.18% against the US Dollar, closing at a rate of ₦1,476.24. On the Central Bank of Nigeria (CBN), gross external reserves climbed to $33.159 billion. The naira hits intraday highs of N1,500 and intraday lows of N1,400.
Today, the naira depreciated by 1.02% in the parallel market, ending the day at an average of N1,480 per US dollar as demand continues to outpace supply.
The apex bank has stopped defending the naira in the informal currency market, asking Bureau de Change operators to register their businesses. In the global commodity market, Brent crude gained 0.05% to trade at $82.64 per barrel, while WTI crude futures traded at $78.20 per barrel.
The increase in Brent crude prices was attributed to concerns over US crude stockpiles, which unexpectedly rose by 3.73 million barrels, according to EIA data, contradicting expectations of a decrease of 1.55 million barrels.
